Awaiting Clarity On Automatic Stay Provisions

Law360, New York (August 25, 2009, 1:23 PM EDT) -- In a recently filed motion in the U.S. Bankruptcy Court Southern District of New York, Lehman Brothers Holdings Inc. (“LBHI”) is seeking to compel Metavante Corporation to perform its obligations under a swap agreement between Metavante and Lehman Brothers Special Financing Inc. (“LBSF”) (guaranteed by LBHI).[1]

LBHI contends in the motion that Metavante’s attempt to suspend regularly scheduled payments pursuant to Section 2(a)(iii) of the International Swaps and Derivatives Association Inc.'s Master Agreement is in violation of the automatic stay provisions of the U.S. Bankruptcy Code[2]...